Berkshire Hathaway CEO Warren Buffett talked about the contagion of fear in the banking industry. He said that sometimes fear is reasonable, and sometimes it is not.
Buffett's father lost his job in a bank run early in the Great Depression, but the banking industry has changed.
The creation of the Federal Deposit Insurance Corporation (FDIC) was a farsighted move.
Buffett said the economy cannot function if people fear the safety of their bank deposits.
Even though the FDIC pays 100% insurance on all deposits, people are concerned in all sorts of crazy ways.
This should not happen.
Politicians, institutions and the media have done a terrible job of delivering their message.
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